The long-run aggregate supply will increase when
A. the price level increases.
B. tax rates increase.
C. international trade barriers are removed.
D. labor supply decreases.
Answer: C
You might also like to view...
The ERT Company sells lead pencils in a perfectly competitive market for $5 per box of a dozen pencils. The firm currently produces 2,500 boxes of lead pencils each week and average total cost at this level of production is $5.15
What level of profit is this firm earning? Explain.
Which of the following statements regarding price floors is TRUE?
a. Price floors always benefit consumers and harm producers. b. Price floors make markets more efficient, but they diminish profit levels. c. Price floors result in shortages. d. Price floors are intended to help certain people, but they have side effects that may harm others in predictable ways.
Explain why the marginal cost curve intersects average total cost at the point of minimum average total cost.
What will be an ideal response?
The percentage of the U.S. population living in poverty during the 2000 to 2011 period:
A. Decreased slightly B. Increased C. Remained relatively constant D. Decreased sharply